Riccardo Dell’Anna
FROM FUNCTIONS TO PROCESS RESPONSIBILITIES THE CHANGE LINKED TO THE COMPETENCE DEVELOPMENT INTRODUCTION The change examined in this case refers to a Business Unit operating on the automotive field and is part of the SKF Group. The unit has a world wide responsibilities of product development, production and sales of products destined to a specific automotive application. In particular the production is made in seven factories, in Italy, France, Spain, USA, Korea and Brazil. The analysis of the customer requirement and the geographical distribution of the Business Unit facilities led to the decision that there was a need to work on the internal processes to improve the performance. In this case the processes involved are all but manufacturing. When analysing the possible solution of a problem, we are always faced with two possible solutions: - improvement - restructuring In the specific case we have chosen the second option. The stakeholders perceive the results of all the processes combined but not the internal results of the individual company function. From this the importance of driving the company through the processes and their stakeholder perceived efficiency and performance became apparent. So the organization of the Business Unit and the relevant responsibilities have been aligned to the processes and not to the traditional functions. Particular attention has been put on the search of the continuity of the flow of the process. The integrity of the process is more regular if it is not interrupted by actions done by many different functions (encl.1-2) Giving the process manager the full responsibility of the entire process, he is faced with the need to manage actions requiring a multifunctional skill, before covered by the consultancy with the traditional organization functions. In the business at a global level the manager challenges himself on the need of improving the results in the company. Due to the worldwide distribution of resources, the manager is loosing the physical perception of the traditional organization. The possibility of increasing the understanding and the control of the business is left to the development of stronger processes able to glue the company. One of the consequences of this change to a process orientation is that the manager needs for himself and for his resources multiskilled competences that were before assured by the traditional organization functions. (developing a single skill resources) So the employees competences are a value of the company and the processes are the glueing factor. Business on a global level, combined with the above situation, requires as a consequence that the processes are re-engineered and the key competences of individuals as well as the global level of competences are clearly defined. Indeed the company is becoming a complex of competences with labor and resources distribuited on a global level. The improvement potential is proportional to the quantity of key competences. One of the fundamental roles of the process manager/responsible is to identify and develop the competences of all the participants to the relevant process.
Summarizing, the process manager as priority has to: - evaluate integrity and continuity of the processes - define the competences required by the process - evaluate the employees competence level - develop the competences of the people acting in the process. In order to facilitate the analysis and the decisions we are using a Human Resources management based on the system of competence that will be described herebelow.
APPROACH TO HUMAN RESOURCES COMPETENCES: MOTIVATIONS
1 MANAGEMENT
BASED
ON
THE
SYSTEM
OF
The application of the system of competences in Human Resources management is significant for two reasons: firstly, because of the fondamental role that the competences model has assumed in Human Resources management in the on going historical circumstances characterized by rapid and profound changes in both the economic field and the organisational models; secondly, for the importance which this approach is taking shape in SKF as the integrated personnel management element of the future. One model which utilizes competences as the basis of the Human Resources management and development systems can, therefore, represent a valid approach in an organisational context characterized more and more by elements of dynamism and flexibility. This is due to a series of reasons which we will try to synthesize below: 1) The competences appear to be more stable with time than job post. These change with the organisation which changes very frequently today. 2) The concept of competence is more easily integrable with the model of processes whose functionality and result depend on the capacity of individuals rather than on their role These first 2 aspects permit: - a shift in management priority on the persons rather than on the posts they occupy - a better adaptation to frequently evolving complex organisational structures based on necessary professionalism to run the organisational processes 3) Competences make it possible to define a common base for the construction of an integrated Human Resources management and development system which permits: - development of Human Resources to align the 'competences' to the requirements of changes - creating the conditions to make internal mobility simpler - put into effect a coherent and competetive rewarding policy An integrated Human Resources management based on a competence model represents the objective towards moving, and it will constitute the driving element behind the development and 'rewarding' system for the managerial, clerical and working staff. 2 THE SKF COMPETENCE SYSTEM 2.1) The concept of competence There is a theoretical definition of competence advanced for the first time in 1982 by Boyatzis which has been adopted and accepted generally by the majority of successive authors. It says:
Competence:
the essential characteristic of an individual causally connected to an excellent performance in a job. If the definition constitutes a common starting point on the whole, different authors attribute varied meanings to its diverse aspects.
In SKF, it has been decided to give the following definition to COMPETENCE: The ability and knowledge (professional elements) acquirable/improvable through development activities (training, coaching, cooperation, self-education etc.) In this way, all the individual personality traits, considered practically unmodifiable in a short period of time by the firm, are treated separately as: PERSONAL CHARACTERISTICS: innate characteristics of the person, i.e. part and parcel of an individual's intellect and character, difficult to develop in a short period of time. 2.2) Competence Inventory Construction: The SKF Choice To make up a suitable Competence Inventory, it is necessary in the first place to consider the Company as a set of individual knowledge, ability and quality. The objective lies in describing all the constituent parts and activities in terms of competence. In this way it is possible to create a competence inventory capable of covering every activity. This Inventory: - puts together the competences which are important for the Business Unit as they are more or less directly correlated to the predetermined business targets - represents a common language of description for the entire organisation, utilisable for representing a set of professional profiles - doesn't suffer the consequences of organisational structure modifications, being at the same time, sensitive to the Business Unit strategy and core process modifications What was done in SKF in the first place, was the making up of the first competence inventory followed by the contemporaneous advancement of two processes: to build up the competence profile, on one side, to identify the different standard organisational positions, and on the other, the amplification and integration of the inventory as and when necessary. For SKF, the preparation of the competence Inventory was not, therefore, an activity limited in time and rigorously predisposed with respect to successive phases of the model, but presents characteristics of evolution and completion with time, yet to be terminated. About 200 competences have been identified so far, a number, on the whole, in line with what was supposed at the beginning and which represents a good cost/completeness ratio. Each of them has been inserted in a dictionary where, apart from the identification code, the denomination in English, a synthetical description of the contents and the pertaining family is supplied. 2.3) Competence Typologies To permit better management aimed at model objectives, and for better use of subsequent applications to be carried in the Business Unit, the competences have been subdivided into different families (see enclosure 3). GENERAL COMPETENCES: (managerial, linguistic, techno-informatics etc.) which are not exclusively and specifically connected to processes, the organisation and the technologies utilised in the Company. These competences have been further sub-divided into: - Basic Knowledge which forms part of the competences regarding use of informatics instruments, basic/essential knowledge the occupant of a given position must posses - General Knowledge about the Company which forms part of he competences with regard to knowledge of the various organisational techniques (production, sales, product development, supplies, management control etc.), the budget and the balance sheet etc. - Organisational Knowledgeof the Business Unit which forms part of the knowledge of the teamwork techniques, Human Resources management, project work, TQM, Lean Production Concept etc. SPECIFIC 'PROFESSIONAL' COMPETENCES: Represent competences specifically and exclusively connected to processes, organisation and technologies used by the Business Unit. Two categories of ability/knowledge have been identified: - Details of function:
- Details of professionalism required of persons occupying a position of that function or operating in a very specialistic process sector 2.4) Standard Positions In the competence model the concept of position and its corresponding competence profile assumes fundamental importance since it comes into play in representing the term of steady comparison with which to compare the organisational posts making up the organisation chart and its relative occupants, to permit evaluation of the difference between required and possessed competences. Let us now have a look at the definitions SKF has adopted for the 3 concepts which come into play in this scheme (position, post, occupant). POSITION: represents a Standard Organisational Figure with tasks and staff occupational features, not referable to a real organisational placing or to a person, but being part of an organisational reference model. (eg. the position of Material Flow) POST: represents the link between a Position and the precise individualisation of its organisational/geographical allocation. (eg. Factory, Material Flow, Business Unit management) OCCUPANT: represents the person who occupies a Post. In adopting an approach of this type, what the Company aimed at was the creation of a structure of standard positions which would represent a kind of organisational ideal of reference. A construction of this type, and this is fundamental, which reflects the Company's choice in a given historical moment at the level of technological environment and organisational model, appears at the same time imperturbable with respect to organisation chart of posts, afflicted by a very high variability linked to the search for ever greater efficiency. (see enclosure 4) 2.5) Identification of Standard Positions. As we have just seen, what the Standard Position concept permits doing and what the Company has proposed to do, is the identification of an organisational structure of reference. To arrive at this result, it was necessary for SKF to proceed with the identification of these Standard Positions through a series of phases which, in the first place, involved Human Resources mana-gement analysts and, in the second, the Heads of each organisational area in an ever greater probing. The Human Resources analysts have arranged a theoretical construction of the first hypothesis of an ideal structure, subsequently corrected, integrated and validated through interviews with the managers of each organisational area. 2.6) Construction of the Competence Profiles Once all the fundamental activities at the head of a particular Position have been identified, it is possible to move on to the subsequent phase and attribute to this Position the necessary Competences to carry out its activities. The Position in this phase is analysed and steps are taken to obtain the required Competences. In order to maintain management complexity at the minimum possible level, the firm has decided to establish a reference relative to the maximum number of pertinent Competences in one Position. The maximum limit has been fixed at 30 competences for each position, with some possible exceptions in the case of particularly high managerial positions. Then, to each competence of the profile a level is assigned which determines the required grade of knowledge so that the occupant can obtain an adequate/higher performance. It is possible to attribu-te the level on four gradings: 1 = possession of basic standards of competence required 2 = possession of intermediate level of competence required 3 = a good command of competence for operative autonomy required 4 = a high command (ability) of competence (even for associated operational techniques) required.
Apart from the level, it is also possible to assign a weight to each competence indicating its relevance with respect to other competences in the sphere of the specific Position profile.The weight of each competence may vary in value on a 1 to 9 scale. 3 OUTPUTS OF THE METHOD: APPLICATIONS One model based on the assumptions of Competences has the possibility of being utilized as support for all the management processes for Human Resources. The Individual Competence Profile (Matching) process is set at the base of all Competence Mapping applications. In order to be able to carry out an adequate comparison, it is necessary to arrive at the identification of the competences possessed by every single person in relation to the position profiles occupied or to be occupied by each. This process is managed directly by the Human Resources which are geographically or organisationally competent which, with the chief of the person under evaluation, start individualising competences and the respective levels the person possesses in relation to the position occupied or to be occupied. 3.1) Development in the Position SKF has decided to start implementation of the model giving priority to the development and training of its personnel. The basic idea was to be able to evaluate the persons in relation to the position held in the Company with the aim of bringing out possible deficiencies between competences required due to organisational evolutions and possessed competences, and consequently, to be able to predispose suitable training programmes to fill in these gaps. This choice was dictated by practical necessities representing the evaluation of the adequacy of the resources for the role entrusted to them in the Company, it being the fundamental presupposition for a good Human Resources management activity; in addition, it's the applicational sphere which presents greater immediacy between analysis and action plans. 3.2) Development for new Positions (Mobility) A further application, already operative in the Company and which comes down as a logical development to a simple comparison between the position competence profile and the occupant, is that relative to the utilisation of the model for internal mobility and the predisposition of Succession Plans. In this case matching is to be understood to select one or more resources which have the suitabili-ty requisits to fill eventual vacant positions or those to be filled in the future by succession, or, even new positions introduced by organisational development, and must be carried out between the candidate's competences and those of the position to be filled. 3.4) Developments for the future 3.4.1) Human Resources evaluation and reward systems The dealt with applications make it evident how, in the present circumstances, the competences of a person are always evaluated in the light of the position which the person fills or might fill. In other words, eventual competences beyond the orbit of that particular position, but which may, however, be part of the patrimony of the person, may not be brought out, with the risk of not being able to take full advantage of the same resources. It is evident, however, that the total individual competence patrimony constitutes a capacity able to product useful results if appropriately used even beyond the specific role. It constitutes ,therefore, a 'productive factor' to which the market is willing to attribute a value. This is an aspect of management for competences which will surely find its necessary applications in the new reward philosophies which are being attained for the near future, pushing the Business Unit to maximum utilisation of all the first-rate competences of their Human Resources patrimony. 3.4.2.) Mobility Management Improvement An evolution, at a good level of development and at the threshold of implementation and introduction,now, finds its place beside the competence profiles of Personal Characteristics profiles. The SKF intention is to use these characteristics not only to complete the check-list between the Position profile and the occupant's profile but to identify potentials on which to plan internal mobility as well.
ORGANIZATION CHART AND ORGANIZATION REFERENCE MODEL: RELATIONS
ORGANIZATION REFERENCE MODEL STANDARD POSITIONS and CORE PROCESS COMPETENCE JOB
ORGANIZATION CHART POSTS / BOXES
CRITERIA:
Process A
STANDARD AND TIPICAL JOBS / RESPONSIBILITIES IN THE ORGANIZATION
Process B
FEW VARIATIONS (DUE TO NEW ORGANIZATION MODELS)
HIGH VARIATIONS (DUE TO SHORT TERM OPERATIONAL NEEDS)
Enclosure 4
CAR Electrical Wheels Division Business - HR Unit 1999/01 RDA 990215 CW-Present
BASIC KNOWLEDGES
GENERAL COMPETENCES
COMPANY GENERAL KNOWLEDGES COMPANY MANAGERIAL KNOWLEDGES
MANAGERIAL AND STAFF COMPETENCES
SPECIFIC PROFESSIONAL COMPETENCES
OF THE PROFESSIONALITY
OF THE FUNCTION